Citi: South Korean Chip Exports Support Surplus, Won Seen Strengthening Further

According to Jin10, Citi economist Jin-Wook Kim said South Korea’s current account surplus is showing a structural expansion trend, supported by continued growth in chip exports and a steady goods trade surplus, which could strengthen the won over the long term. Kim expects South Korea’s current account surplus to average 22.8% of GDP from 2026 to 2028, well above the 4.2% average from 2016 to 2025. Citi forecasts the dollar-won exchange rate will fall to 1,300 over the next three months and to 1,270 over the next six to 12 months. The rate has fallen 6.6% this year and currently stands at 1,345.30 won per dollar. Citi said South Korean financial regulators and the National Pension Service may buy dollars if the won appreciates too quickly.